Tether’s gold-backed token XAUt has secured Shariah certification from Amanah Advisors, a development that Tether says could make its tokenized gold product more accessible to Islamic financial institutions and investors seeking Shariah-compliant exposure to physical gold.
According to Tether, the certification concludes that XAUt’s design aligns with core Islamic finance requirements: the token is fully backed by physical gold, it does not involve interest-based mechanics, avoids leverage, and maintains transparent reserves disclosures. Tether states that each XAUt token corresponds to one troy ounce of physical gold held in Swiss vaults.
Key takeaways
- XAUt has received Shariah certification from Amanah Advisors, positioning it for wider use by Shariah-focused institutions.
- Tether says the token is fully backed by one troy ounce of physical gold per XAUt, stored in Swiss vaults.
- The company highlights compliance features commonly required in Islamic finance, including no interest and no leverage.
- Reserve reporting shows XAUt is already one of the more established tokenized gold offerings, with backing exceeding 707,000 troy ounces as of March 31.
- Onchain metrics compiled by RWA.xyz indicate XAUt’s asset value has risen sharply since mid-2025.
Why Shariah certification matters for tokenized gold
For investors and institutions operating under Shariah principles, the challenge is often less about whether gold is permitted, and more about how a financial product is structured. Islamic finance typically emphasizes restrictions around interest, excessive uncertainty, and speculative leverage—conditions that can affect whether certain tokenized products are considered acceptable.
Tether’s certification directly targets that gatekeeping issue. By obtaining formal Shariah certification for XAUt’s structure, Tether is signaling that its tokenized-gold model is designed to meet the expectations of Shariah-governed decision makers—potentially reducing friction in markets where Shariah compliance is not optional.
In its announcement, Tether said it expects the certification to support adoption in regions where Islamic finance is widely used, including the Gulf Cooperation Council, South Asia, and parts of Africa.
XAUt’s backing and growth in tokenized gold
Tokenized gold only becomes practically useful to mainstream users if the underlying asset is credibly secured and consistently disclosed. Tether points to reserve reports published on its website as evidence of ongoing backing and transparency.
In Tether’s most recent reserves reporting, the company said XAUt was backed by more than 707,000 troy ounces of physical gold, worth over $3.3 billion, as of March 31. That matters because Shariah certification alone does not address the operational question of whether there is sufficient physical backing behind token issuance.
Beyond reserve disclosures, market interest in the product appears to be growing onchain. Data cited from RWA.xyz shows XAUt’s onchain asset value rose from roughly $700 million in July 2025 to around $2.5 billion. While onchain valuations do not replace physical reserve verification, they do offer a window into how widely a tokenized asset is being held and used across blockchain-based venues.
Shariah-compliant digital assets move from niche to organized offerings
Crypto has long faced questions from Islamic scholars about whether certain digital assets can comply with Shariah principles. The debate has often focused on whether participation in the asset introduces prohibited elements such as interest, excessive uncertainty, or speculation.
In recent years, however, more structured products have emerged that attempt to address those issues directly rather than leaving compliance to interpretation. The broader trend appears to be an industry shift toward token designs that emphasize asset backing, transparent reserve models, and reduced exposure to interest-like returns.
Earlier coverage from Cointelegraph noted that Shariah-compliant approaches have been pursued in different ways. For example, a Bahrain-based group, AlAbraaj Restaurants Group, adopted a Bitcoin treasury strategy and said it planned to develop Shariah-compliant financial instruments to broaden access to Bitcoin across the Islamic world.
More recently, Palm Azgar Finance expanded its Shariah-compliant PUSD stablecoin to ADI Chain, positioning the product for participation in what it described as the $3 trillion Islamic finance market. PUSD is designed to allow transactions to settle using either a dollar-linked asset or a dirham-denominated token on the same infrastructure.
Alongside individual product efforts, regulatory clarity has also been a factor in regional expansion. Dubai has been highlighted as a leading crypto hub in the Middle East, continuing to grow its regulated digital asset framework. Cointelegraph previously reported that Dubai’s Virtual Assets Regulatory Authority (VARA) issued its 50th virtual asset service provider license earlier this month, surpassing the number of licensed crypto firms in Hong Kong and Singapore.
What to watch next after Amanah Advisors’ certification
With Shariah certification in place, the next question is adoption: whether Islamic banks, funds, and Shariah-governed investors will translate compliance approval into measurable purchasing and integrations for XAUt. Readers should watch for subsequent announcements from Tether or ecosystem partners describing where XAUt will be offered, how it will be distributed through compliant channels, and whether reserve reporting continues to meet the transparency expectations that underpin Shariah assessments.
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